TaxTMI 
TaxTMI 
2013 (9) TMI 1056
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....1.1 The assessee subsequently vide letter dated 17.3.2012 also filed an additional ground regarding tax rate to be applied in case of capital gain computed u/s 50 r.w.s 50C of the Income Tax Act. The additional ground being a legal ground which does arise on the basis of facts on record was admitted by the Tribunal for adjudication. 2. We first take up the dispute relating to computation of capital gain u/s 50 r.w.s 50C of the Income Tax Act and the application of tax rate as raised in the additional ground. The assessee during the relevant year had sold a flat at Khar for Rs. 35,00,000/-. Since the flat was a business asset and had been shown as part of the block of assets, the assessee computed the capital gain u/s 50 of the IT Act at Rs....
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.... IT Act has been decided by the Special bench of Tribunal in case of ITO v. United Marine Academy [2011] 130 ITD 113 in which it has been held that provisions of section 50C would also apply in case of computation of capita gain from depreciable assets u/s 50 of the IT Act. The learned AR further submitted that the flat sold by the assessee had been held for a long time exceeding more than three years and, therefore, the capital gain though it was required to be computed u/s 50 of the IT Act, it has to be treated as long term capital gain in view of the judgment of Hon'ble High Court of Bombay in case of CIT v. Ace Builders Ltd. [2006] 281 ITR 210 in which it has been held that the factum of deemed short term capital gain u/s 50 of the ....
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....for a limited purpose i.e. for the purpose of section 48 and 49 and for the purposes of section 54E, the capital has to be treated as long term capital gain. The Tribunal also accepted the arguments of the assessee that in case capital gain is assessed as long term capital gain the rate of tax would apply as provided in section 112 of the IT Act. It was, therefore, argued that in case of assessee, rate of tax applicable to long term capital gain had to be applied as per the provisions of section 112 of the IT Act. 2.3 The learned DR on the other hand placed reliance on the orders of authorities below. 2.4 We have perused the records and considered the matter carefully. The dispute is regarding applicability of provisions of section 50C to....
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....w canvassed by the learned AR is supported by the judgment of Hon'ble High Court of Bombay in case of Ace Builders (P.) Ltd. (Supra) in which it has been held that for the purpose of other provisions of the Act such as section 54EC the capital gain has to be treated as long term capital gain, if the asset is held for more than three years. The same view has been taken by the Mumbai bench of Tribunal in case of Manali Investments v. Asstt. CIT [2011] 45 SOT 128 in which it has been held that the prescriptions of section 50 are to be extended only to the stage of computation of capital gain and, therefore, capital gain resulting from transfer of depreciable asset which was held for more than three years would retain the character of long ....
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.... to the tune of Rs. 5,94,454/- 3.1 In appeal, CIT(A) observed that in view of the judgment of Hon'ble Supreme Court in case of T.R.F Ltd. v. CIT [2010] 323 ITR 397, the assessee was no longer required to prove that the bad has actually become irrecoverable. The claim had to be allowed if the debt is actually written off and had been taken into account in the computation of income of the earlier years. CIT(A), therefore, allowed the claim of the assessee except to the tune of Rs. 59,373/- as per details given below which according to him had not been taken into account in the computation of income of earlier years. (i) Deposit with Indian Standard Institute Rs. 26,200/- (ii) Deposit with Ulhasnagar Municipal Corp Rs. 1....